Coupang posts record sales in 2024 on ‘new growth’ business

South Korean e-commerce giant Coupang, Inc. said Wednesday its sales exceeded 40 trillion won (US$27.9 billion) for the first time last year on robust sales in the “new growth” segment.

Sales jumped 29 percent to a record 41.29 trillion won in 2024 from 31.82 trillion won a year earlier, the company said in a press release.

In particular, increased sales of its online luxury fashion retailer Farfetch Holdings and strong demand for Coupang’s “rocket” delivery services in Taiwan helped drive up its annual sales, it added.

Coupang acquired British retailer Fartech in January 2024 in a deal that introduced the New York-listed e-commerce giant to a leading position in the $400 billion global market for personal luxury goods.

Its net income, however, plunged 95 percent on-year to 94 billion won from 1.36 trillion won in 2023, due mostly to what company officials called a “base effect” and aggressive new investments.

“Increased investments in new businesses in global markets, such as Taiwan, and automation of local logistics facilities weighed on the annual earnings results,” a company spokesperson said.

Operating profit slipped 2.4 percent on-year to 602.3 billion won in 2024.

For the fourth quarter, Coupang posted a net profit of 182.7 billion won, also sharply down from 1.36 trillion won for the same period in 2023.

“In the fourth quarter of 2023, a non-cash tax benefit worth $895 million was reflected in the bottom line. But there was no such one-off factor in the fourth quarter (of 2024),” the release said.

Operating profit more than doubled to 435.3 billion won from 171.5 billion won over the cited period.

The company received 244 billion won in an insurance payment for a fire at its logistics center in Deokpyeong, about 45 kilometers southeast of Seoul, in June 2021. The insurance money was reflected in the quarterly earnings, the release said.

Sales rose 28 percent to a record quarterly high of 11.1 trillion won in the fourth quarter from 8.66 trillion won a year earlier.